Carillion PLC Carillion acquires Outland Group (6022O)
May 29 2015 - 2:04AM
UK Regulatory
TIDMCLLN
RNS Number : 6022O
Carillion PLC
29 May 2015
29 May 2015
Carillion acquires Outland Group, a Canadian support services
business
Integrated support services company, Carillion plc, has acquired
100 per cent of the share capital of Outland Group(1) (Outland), a
leading provider of remote-site accommodation and associated
services that operates across Canada.
Outland is a privately-owned business, which started in 1985,
and which provides a complete range of remote-site services
including accommodation, camp management, catering, maintenance and
housekeeping to public and private sector customers across a wide
range of growth sectors, including mining, utilities, forestry, gas
and oil, in which it has strong positions. The existing senior
management team of Simon Landy, David O'Connor and Jeff Taylor, who
were also the major shareholders in Outland, will join Carillion
and remain with the business.
The acquisition complements and enhances the existing skills and
capabilities of Carillion's support services business in Canada, in
line with our strategy of accelerating the development and growth
of our services activities across Canada. Currently, Outland is
delivering projects or actively bidding for contracts in 9 of
Canada's 13 Provinces and Territories.
The consideration will be paid in instalments from Carillion's
existing cash resources, with the total dependent on the financial
performance of Outland, but capped at GBP63 million. The first
instalment of some GBP11 million, of which approximately GBP5
million relates to the acquisition of cash and excess working
capital on Outland's balance sheet, will be paid in 2015, with
further instalments in 2016 totalling approximately GBP25 million.
The balance of the consideration will be paid in 2018 and 2019 and
this will be based on 4.5 times 51.5 per cent of Outland's average
EBITDA in 2015, 2016 and 2017, but capped so that the total
consideration does not exceed GBP63 million.
At 30 September 2014, Outland had gross assets of GBP38.5
million. In the 12 months to 30 September 2014, Outland had revenue
of GBP112.2 million and pre-tax profit of GBP12.3 million.
Outland's balance sheet and financial results will be 100 per cent
consolidated.
Commenting, Carillion Chief Executive, Richard Howson, said:
"Acquiring Outland is another important strategic step in the
development of our support services business in Canada. Outland
brings complementary skills and knowledge to Carillion and its
culture complements our own. It has built a reputation for
delivering high-quality, value-for-money services to a portfolio of
blue chip private and public sector customers and is
well-positioned in a diverse range of growth markets. We therefore
look forward to welcoming the Outland team to Carillion and to
working together to build on their strong track record".
(1) Outland Group comprises 491313 B.C. Limited and its
subsidiaries and associates.
Notes to Editors
The Outland Group comprises 491313 B.C Ltd. and its subsidiaries
Outland Camps Inc, Outland Resources Inc. and Bearhills Fire
Inc.
Carillion is a leading integrated support services company with
a substantial portfolio of Public Private Partnership projects and
extensive construction capabilities. The Group had annual revenue
in 2014 of some GBP4.1 billion, employs around 42,000 people and
operates across the UK, in the Middle East and Canada.
The Group has four business segments.
Support services - this includes facilities management,
facilities services, energy services, utility services, road
maintenance, rail services and consultancy services.
Public Private Partnership (PPP) projects - this includes
investing activities in PPP projects for Government buildings and
infrastructure, mainly in the Defence, Health, Education, Transport
and Secure accommodation sectors.
Middle East construction services - this includes building and
civil engineering activities in the Middle East.
Construction services (excluding the Middle East) - this
includes building, civil engineering and developments activities in
the UK and construction activities in Canada.
This and other Carillion news releases can be found at
www.carillionplc.com
For more information
Richard Adam, Group Finance Director, Carillion plc + 44 (0)
1902 316360
John Denning, Director Group Corporate Affairs, Carillion plc +
44 (0) 1902 316426
Finsbury
James Murgatroyd or Gordon Simpson +44 (0) 207 2513801
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQQKLBLEEFBBBL
Carillion (LSE:CLLN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Carillion (LSE:CLLN)
Historical Stock Chart
From Sep 2023 to Sep 2024